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Effects of Changes in Family Composition and Employment Patterns on the Distribution of Income in Australia: 1981–1982 to 1997–1998

Year: 2004

Type: article

Abstract: We examine income distributions over the last two decades, presenting both non‐parametric kernel density estimates and summary measures. Standard errors of summary measures are also reported to facilitate statistical inference. We find a significant increase in private income inequality, but only a modest increase in disposable income inequality, implying an increase in the inequality‐reducing effects of income taxes and transfers. Using a semi‐parametric procedure developed by DiNardo et al. (1996), we then examine the effects of changes in family characteristics on the distribution of private income, finding that half the increase in inequality is explained by changes in the distribution of employment.

Source: Economic Record

DOI: 10.1111/j.1475-4932.2004.00174.x

Authors: David Johnson, Roger Wilkins

Institutions: Government of Victoria, The University of Melbourne

Language: English

Topic: Income, Poverty, and Inequality

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Reduced inequalities, No poverty, Decent work and economic growth

Open Access status: green

Funder: Australian Government